ENTREPRENEURIAL RISK-TAKING PROPENSITY AND PERFORMANCE OF AGRO-ENTREPRENEURS IN OBIO AKPOR LGA, RIVERS STATE
Abstract
This study examined the relationship between entrepreneurial risk-taking and performance of Agro-Entrepreneurs in Obio Akpor LGA, Rivers State. The study adopted a cross sectional survey research design. Data for this study were collected from primary source with the aid of structured questionnaire. The population of the study was ninety agro-entrepreneurs who are registered with the Agricultural Development Board in Obio/Akpor LGA and are involved in Fish farming, rice farming, poultry, oil palm processing etc. The reliability of the instrument was achieved by the use of the Cronbach Alpha coefficient with all the items scoring above 0.70. The hypotheses were tested using the Spearman’s Rank Order Correlation Coefficient with the aid of Statistical Package for Social Sciences version 23.0. The tests were carried out at a 0.05 level of significance. The findings revealed that there is a significant relationship between entrepreneurial risk-taking and performance of Agro-Entrepreneurs in Obio Akpor LGA, Rivers State. This study concluded that entrepreneurial risk taking significantly influences performance of agro-entrepreneurs in Obio-Akpor LGA of Rivers State. The study thus recommended that agro-entrepreneurs should always aggressively exploit potential opportunities regardless of the uncertainty. They should be willing to accept a certain level of risk to ensure success in their entrepreneurial ventures.
Keywords: Entrepreneurial Risk-Taking, Performance, Agro-Entrepreneurs
CITATION: Adim, C. V., Mezeh, A. A., & Bassey, U. L. (2021). Entrepreneurial risk-taking propensity and performance of agro-entrepreneurs in Obio Akpor Lga, Rivers State. The Strategic Journal of Business & Change Management, 8 (4), 953 – 965.
Full Text:
PDFReferences
Ahimbisibwe, G. M., & Abaho, E. (2013). Export entrepreneurial orientation and export performance of SMEs in Uganda. Global Advanced Research Journal of Management and Business Studies, 2(1), 56- 62.
Ajzen, I., & Fishbein, M. (2005). The influence of attitudes on behavior. In D. Albarracín, B. T. Johnson, & M. P. Zanna (Eds.), The handbook of attitudes (pp. 173-221). Mahwah, NJ: Erlbaum.
Asenge, E., Diaka, H., & Soom, A. (2018). Entrepreneurial mindset and performance of small and medium scale enterprises in Makurdi metropolis, Benue State, Nigeria. International Journal of Innovation, 6(2), 124-146
Awang, A., Ahmad, Z, A., Asghar, A.R., Subari, K.A., & Kassim, S. A. (2011). Firm entrepreneurial orientation and knowledge/networking of agro based enterprises in Malaysia: The role of technology and strategy. African Journal of Business Management, 5 (22), 9685-9706
Begley, T. M. & Boyd, D. P. (2007). Psychological characteristics of associated with performance in entrepreneurial firms and small businesses. Journal of Business Venturing, 2, 79-83.
Belinskaja, L., & Velickiene, M. (2015). Business Risk Management: Features and Problems in Small and Medium-Sized Trading and Manufacturing Enterprises. European Scientific Journal, 2 (June Special Edition), 30-58.
Bird, B. (1988). Implementing entrepreneurial ideas: the case for intention. Academy of Management Review,13, 442–453.
Blais, A. R., & Weber, E. U. (2006). A domain - specific populations. Judgment and Decision Making, 1(1), 33-47.
Boaermans, M., & Willebrands, D. (2017). Entrepreneurship, risk perception and firm performance. U. S. E. Discussion Paper Series number, 17-04.
Brockhaus, R. H. (2012). Risk Taking Propensity of Entrepreneurs. Academy of Management Journal, 23(3) 509 – 520.
Chepngetich, P. (2016). Effect of Financial Literacy and Performance SMEs. Evidence from Kenya. American Based Research Journal, 5, 26–35
Cunningham, L. X., & Rowley, C. (2007). Human resource management in Chinese small and medium enterprises. Personnel Review, 36(3), 415-439.
Da Silva, C.A., Baker, D., Shepherd, A.W., Jenane, C., & Miranda-da-Cruz,S. (2009). Agro – industries for Development. Wallingford, United Kingdom: CABI Publishing.
Dess, G. G., & Lumpkin, G.T. (2005). The role of entrepreneurial orientation in stimulating effective corporate entrepreneurship. Academy of Management Executive, 19(1), 147-156.
Dhiwayo, S. V., & Vuuren, J. J. (2007).The strategic entrepreneurial thinking imperative. Accounting Communication, 7, 123-134.
Eniola, A.A. & Ektebang, H. (2014). SME firms performance in Nigeria: Competitive advantage and its impact. International Journal of Research Studies in Management, 3(2), 75-86.
Etebang, H., Harrison, R., & Ernest, C. (2010). Entrepreneurial orientation of public enterprises in Malaysia. Business Strategy Series, 11(2), 77
Fairoz, F. M., Hirobumi, T., & Tanaka, Y. (2010). Entrepreneurial Orientation and Business Performance of Small and Medium Scale Enterprises of Hambantota District Sri Lanka. Asian Social Science, 6 (3), 34- 46.
Forlani, D., & Mullins, J.W. (2000). Perceived risks and choices in entrepreneur’s new venture decisions, Journal of Business Venturing, 15, 305-322.
Hughes, M., & Morgan, R. E. (2007). Deconstructing the relationship between entrepreneurial orientation and business performance at the embryonic stage of firm growth. Industrial Marketing Management, 36(5), 651–661.
Jamil, C. M., & Mohamed, R. (2011). Performance Measurement System (PMS) in Small Medium Enterprises (SMEs): A Practical Modified Framework. World Journal of Social Sciences, 1, 200-212.
Juma, C. (2011). The New Harvest: Agricultural Innovation in Africa. New York: Oxford University Press
Kagwathi, G. S., Kamau, J. N., Njau, M. M., & Kamau, S. M. (2014). Risks faced and mitigation strategies employed by small and medium enterprises in Nairobi, Kenya. IOSR Journal of Business and Management, 16 (4), 1-11.
Kim, K.Y. & Patel, P.C. (2017). Employee ownership and firm performance: A variance decomposition analysis of European firms. Journal of Business Research, 70(C), 248-254
Kirby, (2013). Hunting the Heffalump, in Entrepreneurship and Economic Development. The Free Press, New York.
Kreiser, P., Marino, L., & Weaver, K. (2002).Assessing the psychometric properties of the entrepreneurial orientation scale: A multi-country analysis. Entrepreneurship Theory and Practice, 26(4), 71-95.
Lawrence, N., & Hamilton, L. (2007). New wrinkles in the theory of age: Demography, norms, and performance Ratings. The Academy of Management Journal, 31(2), 309 337.
Lina, J., Sun, Y., & He, J. (2009). The relationship between the entrepreneurial orientation and firm growth performance: under the action of absorptive capacity. Soft Science, 23, 135- 140.
Lumpkin, G.T., & Dess, G.G. (1996). Clarifying the EO construct and linking it to performance. Academy of Management Review, 21(1), 135-172.
Macko, A., & Tyszka, T. (2009). Entrepreneurship and risk taking. Applied Psychology: An International Review, 58(3), 469-487.
Maladzhi, W. R. (2015). Impact of risk-taking leadership on organisational performance and sustainability in SMEs. 2015 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) (pp. 1752-1756). Singapore: IEEE.
Mautra, A. (2018). Entrepreneurship and risk-taking mindset. http://akhilmantra.com/2018/12/ entrepreneurship-and-risk-taking-mindset. Retrieved 04 April, 2019.
McGrath, R. G. (2001). Exploratory learning, innovative capacity and managerial oversight. Academy of Management Journal, 44(1), 118–131.
McMullen, J. S., & Shepherd, D. A. (2003). Extending the theory of the entrepreneur using a signal detection framework. In J. Katz & D. Shepherd (Eds.), Advances in entrepreneurship, firm emergence, and growth, 6: 203–248. Greenwich, CT: JAI Press
Morris, M. H., Kuratko, D. F., & Covin, J. G. (2008). Corporate Entrepreneurship & Innovation, 2nd ed. Mason: Thomson Higher Education.
Nakata, C., & Sivakumar, K. (1996). National culture and new product development: An integrative review. The Journal of Marketing, 6(1), 61-72,
Naldi, L., Nordqvist, M., Sjöberg, K., & Wiklund, J. (2007). Entrepreneurial orientation, risk taking, and performance in Family firms. Family Business Review, 20(1), 33-47.
Nanthuru, S. B., Pingfeng, L., Guihua, N., & Mkonya, V. L. (2018). An assessment of risk management practices of sme taxpayers in malawi and their impact on tax compliance. International Journal of Management Science and Business Administration, 4 (4), 7-17.
Odoemenem, I.U., & Obinne, C. P. O (2010) Assessing the factor influencing the utilization of improve cereal crop production technologies by small scale farmers in Nigeria. Indian Journal of science and technologies 3(1)
Otieno, S., Bwisa, H.M., & Kihoro, J. M. (2012). Influence of entrepreneurial orientation on Kenya’s manufacturing firms operating under East African regional integration. International Journal of Learning & Development, 2(1), 299 – 320.
Palich, L. E., & Bugby, D. R. (1995). Using cognitive theory to explain entrepreneurial risk-taking: challenging conventional wisdom. Journal of Business venturing, 10(6), 426-438.
Patel, P., & D’Souza, R. (2009). Leveraging entrepreneurial orientation to enhance SME export performance. An Office of Advocacy Working Paper. No.337, 1-32.
Rahji, M. A. Y., & Fakoyode, S. A (2009). A multinomial logit analysis of agricultural credit rationing by commercial banks in Nigeria. International research Journal of finance and accounting,
Rao, S. (2013). The impact of entrepreneurial orientation and leadership styles on business performance: A study on micro, small and medium enterprises. Journal of Entrepreneurship & Business Environment Perspective, 2(1), 111-118.
Rauch, A., & Frese, M. (2007). Let’s put the person back into entrepreneurship research: A meta-analysis on the relationship between business owners’ personality traits, business creation and success. European Journal of Work and Organizational Psychology, 16, 353–385
Smit, Y., & Watkins, J. A. (2012). A Literature Review of Small and Medium Enterprises (SME) Risk Management Practices in South Africa. African Journal of Business Management, 6 (21), 6324-6330.
Solesvik, M. Z. (2012). Entrepreneurial Competencies in Emerging Context. 17th Nordic Conference on Small Business Research, Helsinki, 23-25 May
Stam, W., Souren, A., & Elfring, T. (2013). Social Capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators. Journal of Business Venturing, 4-22.
Stewart Jr, W. H., & Roth, P. L. (2001). Risk propensity differences between entrepreneurs and managers: A meta-analytic review. Journal of applied psychology, 86(1), 145.
Tajeddini, K. (2010). Effect of customer orientation and entrepreneurial orientation on innovativeness: Evidence from the hotel industry in Switzerland. Tourism Management, 31(2), 221 – 231.
Takeuchi, H., & Nonaka, I. (1986). The New New Product Development Game. Harvard Business Review, 64, 137-146.
Wambugu, A. W., Gichira, R., Wanjau, K. N., & Mung’atu, J. (2015). The relationship between risk taking and performance of small and medium agro processing enterprises in Kenya. International Journal of Economics, Commerce and Management, 3 (12), 441-455.
Wang, Y., & Poutziouris, P. (2010). Entrepreneurial risk taking: empirical evidence from UK family firms. Entrepreneurial Behavior & Research, 16(5), 370- 388.
Warneryd, K. E. (1988). The psychology of innovative entrepreneurship. In: W. F., Van Raaji, G. M., Van Veldhoven., & K. E. Warneryd. Handbook of Economic Psychology. Netherlands: Kluwer.
Wiklund, J., & Shepherd, D. (2003).Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium sized business. Strategic Management Journal, 24 (13), 1307-1314.
Wiklund, J., & Shepherd, D. (2005). Entrepreneurial orientation and small firm performance: a configurational approach. Journal of Business Venturing, 20, 71-91.
DOI: http://dx.doi.org/10.61426/sjbcm.v8i4.2151
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.